Actelis Networks, Inc.

What they do

Actelis builds networking equipment that combines new fiber with existing copper and coaxial lines, which its patented technology upgrades to 'fiber-grade' speeds, targeting wide-area applications such as federal and military, state and local government, intelligent traffic systems, and utility and rail IoT. It also sells multi-dwelling unit (MDU) inside- and outside-building solutions. Its portfolio includes hybrid fiber and cyber-hardened aggregation switches, high-density Ethernet devices, and management software, including its Meta-Assist Element Management System (EMS) and MetaLIGHT solution for converting legacy T1 lines. Under its 'Cyber Aware Networking' initiative it offers AI-based cyber monitoring and protection software for edge devices.

Revenue drivers

• U.S. carrier software and services — A $0.85 million software and services renewal from a leading North American carrier, including a Meta-Assist EMS version upgrade and MetaLIGHT T1-to-fiber conversion, was cited as the main driver of the second-quarter 2026 revenue increase.
• Intelligent Transportation Systems (ITS) — Follow-on orders from the Washington, D.C. Department of Transportation and new orders across U.S. state, county, and municipal agencies, including an Alaska Department of Transportation project, comprise the government ITS vertical.
• MDU and hospitality (GL9000 platform) — The company reports building traction in multi-dwelling and hospitality markets with its GL9000 platform, a smaller and newer contributor than carrier and ITS business.
• European and EMEA carrier sales (GL800) — An approximately $200,000 order from a Central European carrier for the GL800 multi-Gigabit hybrid fiber-copper product; management reports EMEA revenue up 22% year over year in Q2 2026 and 15% for the first half.

Recent performance

Second quarter 2026 revenue was $1.1 million, up 20% from $0.9 million a year earlier, with gross margin rising to 51% from 32% in Q2 2025 and 25% in Q1 2026. First-half 2026 revenue was $2.1 million, up 26% from $1.7 million, and the first-half operating loss narrowed to $3.4 million from $3.6 million. Full-year 2025 revenue was $3.7 million with a net loss of $8.3 million and operating cash flow of negative $7.7 million. At June 30, 2026 the company reported total assets of $11.4 million, total liabilities of $4.2 million, shareholder equity of $7.2 million, and cash of $5.7 million.

Strategy

Management says it is executing a 2026 plan to increase its partner network and penetration into Federal and Military base modernization, expand its Intelligent Transportation footprint, drive recurring software and services revenue with U.S. carriers, and build traction in MDU and hospitality with the GL9000. It executed cost actions including facility downsizing, vendor consolidation, and outsourcing of certain finance functions, which it expects to generate roughly $1 million of annualized savings beginning in future quarters, and is deploying AI-based internal tools. The stated goal is a return to Nasdaq: shareholders approved a reverse stock split of 1-for-10 to 1-for-25 at an April 2026 special meeting, exercisable by the Board for one year, and on July 1, 2026 the company amended its equity line of credit, with capacity of up to $30 million, following its move to OTCQB.

Risks

• Nasdaq delisting and OTCQB trading — The company received a delisting notice on July 13, 2026 and now trades on OTCQB; the 10-K risk factors state shares could be delisted from Nasdaq if it fails to regain compliance with stockholders' equity continued listing standards.
• Going concern and cash burn — The 10-K states the company's financial condition raises substantial doubt about its ability to continue as a going concern, after negative operating cash flow of $7.7 million in 2025.
• History of net losses — Net losses were $5.3 million (2021), $11.0 million (2022), $6.3 million (2023), $4.4 million (2024), and $8.3 million (2025), and the company says it may incur substantial net losses in the future.
• Concentration in carrier renewals and government orders — Recent revenue growth was driven primarily by a single $0.85 million carrier software and services renewal and by state, county, and municipal transportation orders, so a small number of customers and orders can move reported results.

Outlook

Management says it is focused on executing its business plan and demonstrating operational and financial progress as the foundation for a future uplisting application, pursuing a return to Nasdaq when timing and metrics align. It expects the roughly $1 million of annualized cost savings from facility downsizing, vendor consolidation, and finance outsourcing to affect future quarters. It also cites continued foreign exchange pressure, and describes the OTCQB trading environment as challenging.